2012 Exam Review

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2012 EXAM REVIEW TRICKLE DOWN ECONOMICS

• Where benefits for wealthy corporations and individuals will be passed down through

high level of wages and benefits. Large corporations based in the industrialized world

believed there large-scale investments in creating agri-business in poorer countries

would “trickle down” through local economies and eventually help the poor.

• Unfortunately, because of weak laws in poorer countries, allow for environmental and

wage exploitations.

• Trickle down economics have not always worked because○ Weak laws

○ Environmental and wage exploitations

○ Agribusiness companies take over small farms

GLOBALIZATION

The process of greater global interaction among peoples such as the economic force of

making the world a big market place. Large corporations based in the industrialized world

believed that their large scare investments in creating agribusiness in poorer countries

would trickle down through local economies and eventually help the poor, unfortunately,

because of weak laws in poor countries allow for environmental of wage and exploitation.

INTRO

SWEATSHOPS

• Where workers work 20 hours a day, harsh working conditions, low wages, violence

and abuse, child labour

•

• The real cost of your clothes:

○ retail store 50%

○ Apparel company 33.5%

○ Transport and Tax 5%

○ Materials 8%

○ Profits 2%

○ Other costs 1.2%

○ Wages 0.4%

•

• Examples of sweatshops and child labour: Italy, Mexico, Taiwan, Indonesia and

Bangladesh etc.



BLACK GOLD

• The term “Black Gold” refers to how coffee maybe considered rich and valuable, like

gold should, however it has a dark side and its negativities impacts the farmers who

dig it up. The people of Ethiopia who grow and harvest the coffee do consider it to be

black gold because they are aware of the unfairness. It is hard to find Ethiopian

coffee in the supermarket because of many factors such as price regulation,

fluctuating markets, and how the people in charge, retailers and roasters, exploit the

market power and take advantage of the 3rd world countries. It also depends on the

rapid supplier growth and not enough demand.•

FAIR TRADE

• Fair trade is a market system that is to some degree regulated, to ensure that

producers benefit from trade; e.g. producers are guaranteed a minimum price when

they sell their product.

• Fair trade is based on the belief that marginalized and disadvantaged producers in

developing countries do not benefit free trade

• On average, farmers/producers in developing countries receive only 10% of the price

we pay for coffee and 4% for chocolate

• Guaranteed individuals fair opportunity of becoming socially responsible consumers

○ Improves living habits and well being to producers

○ Protect development opportunities

○ Raising awareness amongst producers

○ Campaign for changes

GAZA STRIP CONFLICT-HAMAS

• 1947, when the UN divided Palestine –the region that is today Israel and the

Palestinian territories-into two parts: one for the Jews and for mostly Muslim Arab

Palestinians

•

Soon Arabs from many countries invaded Israel yet they lost• The violence began by constantly relying on violence to get back their land

• 1970s, Lebanon became an important base for militant Palestinians. Israel invaded

Lebanon however Lebanese combined with Palestinians formed Hezbollah to carryout a guerrilla war

• 2000, Israel decided to withdraw from Lebanon however the friction between the two

remained

• July 12 2006, Hezbollah militants crossed into Israel capturing 2 Israeli soldiers

kidding three others

• Resulted in air strikes from both countries

• Israeli Prime minister launched a series of air attacks and this starts a major conflict

between the two countries.

• 300,000 residents in northern Israel and 1 million Lebanese forced to flee the area

• Conflicts seem unavoidable

POLITICAL CARTOON QUESTIONS

1. What is the event or issue that inspired the cartoon?

2. Are there any real people in the cartoon? Who is portrayed in the cartoon?

3. Are there symbols in the cartoon? What are they and what do they represent?

4. What is the cartoonist’s opinion about the topic portrayed in the cartoon?

5. Do you agree or disagree with the cartoonist’s opinion? Why?



HYDRO DAMS: 3 GORGES

Theory: prevent flooding and to generate power.

Issue Criticism Defense

Cost

The dam will far exceed the official costestimate, and the investment will be

unrecoverable as cheaper power sourcesbecome available and lure away ratepayers.

The dam is within budget, andupdating the transmission grid will

increase demand for its electricity andallow the dam to pay for itself.

ResettlementRelocated people are worse off than beforeand their human rights are being violated.

15 million people downstream will bebetter off due to electricity and flood

control.

Environment

Water pollution and deforestation willincrease, the coastline will be eroded and thealtered ecosystem will further endanger many

species.

Hydroelectric power is cleaner thancoal burning and safer than nuclear

plants, and steps will be taken toprotect the environment.

Local cultureand natural

beauty

The reservoir will flood many historical sitesand ruin the legendary scenery of the gorges

and the local tourism industry.

Many historical relics are beingmoved, and the scenery will not

change that much.

NavigationHeavy siltation will clog ports within a few

years and negate improvements tonavigation.

Shipping will become faster, cheaper and safer as the rapid waters are

tamed and ship locks are installed.

Power generation

Technological advancements have madehydrodams obsolete, and a decentralized

energy market will allow ratepayers to switch

to cheaper, cleaner power supplies.

The alternatives are not viable yet andthere is a huge potential demand for the relatively cheap hydroelectricity.

Flood control

Siltation will decrease flood storage capacity,the dam will not prevent floods on tributaries,and more effective flood control solutions are

available.

The huge flood storage capacity willlessen the frequency of major floods.

The risk that the dam will increaseflooding is remote.

TRAGEDY OF THE COMMONS (GRAND BANKS/NORTH SEA)

• The fishing grounds off the Grand Banks, were among the most productive in theworld yielding up to 276 00 tonnes of northern cod.

• In 1950s, trawlers arrived from other countries and by 1968 catches totalled to 750000 tonnes.

• In 1976, Canadian sovereignty extended out o 370 km to stop overfishing, but other

countries did not stop. Canadian fleets, with the help of new draggers continued to

catch large amounts of fish and deplete the fish stocks.

• In 1986, Canadian government set quotes, and in 1992 the banned cod fishing.

• 40 000 jobs lost and 400 years of fishing ended.

• By 1994, only 1700 tonnes of cod was left



• Experts blamed a combination of government subsidies and business interests for

encouraging improvements in fishing technology

• Western European fishing fleets have been able to reap the benefits of the abundant

fishing grounds in the shallow continental-shelf areas of the North-Sea

• However by the 1990s, the fishing industry has noted a sharp drop in the amount of

fish being caught in the area

• Scientists have said that amount of fishing done here exceeds the threshold levels

(natural replacement) of the species.

• As Northern fisheries collapse, fleets of fishing trawlers will turn to southern oceans.

Fishing trawlers from the European Union are fishing with disastrous consequences in

areas close to Senegal in Africa.

ICEBERG MODEL

• Iceberg Model Theory: The iceberg model, the tip of an iceberg is visible

above the surface of the sea, events are visible indicators. We tend toconcentrate on these events, because they are easy to see, and we often

tend to base our decisions on them, if we are able to look below the surface

however, we will find hese events are only part of a pattern of related

events, and if we look deep enough at the broad base of the iceberg that

makes up most of the mass we will find the systemic structures that

generate those patterns and events.

DARFUR CONFLICT

Geneocide, oil and esources. Country split into 2 south Sudan and North Sudan. North was

Arabic speaking Muslims, South is mostly Christians. Sudan, the largest country in Africa,

has been at war for nearly 50 years. We look at three main conflicts:

• A brutal 21-year civil war between the north and the south that ended in 2005

• The ongoing humanitarian crisis in Darfur in the west where at least 300,000 have diedand 2.7 million been displaced by fighting since 2003

• Slow recovery from conflict in east Sudan where insurgents threatened to challenge thegovernment for a share of the country's power and natural-resources

• The conflict began between to rebel groups, the Arabs and the Africans which escalated in3 years early 2003

POPULATION

• Doubling Time: The amount of time measured in years that it will take for a

countries population to double (DT=70/GR)

• Death rate: The amount of deaths for every 1000 people in the country

• Birth rate: The amount of births for every 1000 people in the country

• Immigration rate: The total amount of people who move to a foreign country as a

permanent resident

• Emigration rate: The amount of people who leave a country to live elsewhere

• Net Migration: The total number of people immigration to a country compared to

the total number of people emigration from the country (NM=IR-ER)

http://www.trust.org/alertnet/crisis-centre/crisis/south-sudan-fragile-peace

http://www.trust.org/alertnet/crisis-centre/crisis/darfur-conflict

http://www.trust.org/alertnet/crisis-centre/crisis/east-sudan-insurgency

http://www.trust.org/alertnet/crisis-centre/crisis/darfur-conflict

http://www.trust.org/alertnet/crisis-centre/crisis/east-sudan-insurgency

http://www.trust.org/alertnet/crisis-centre/crisis/south-sudan-fragile-peace



• Natural Increase: Difference between the birth rate and death rate of a country

(NI=BR-DR)

• Growth Rate: Rate at which a country’s population increases or decreases as aresult of natural and migration factors (GR=NM+NI/1000X100)

• Dependency Load: Ratio/percentage of people under 15 and over 65 to the working

population (between 15-65)

• Population Density: number of people within a measure land area (PD=

Population/area)

CHINA CHILD ONE POPLICY

Policy introduced in 1978 to stabilize the rapidly growing population. It was created by the

Chinese government to alleviate social, economic, and environmental problems in China and authorities

claim that the policy has prevented between 250 and 300 million births from its implementation until 2000.

The policy is enforced at the provincial level through fines that are imposed based on the income of the

family and other factors.

ADVANTAGES:

• Better for China's environment

• Helps economically

• Enough resources to go round

• Less pollution

• Decreased over-crowdedness• Always enough to eat

• Less suffer from poverty.

DISADVANTAGES:

• Killing of innocent girls (babies)

• Illegal abortions/ forced abortion

• effects the one child in various ways

• Abuse towards woman

• This may also lead to an aging populationbecause of less children.





Demographic Transition Model:

• As time progresses, more countries will attain the demographic characteristics of later stages of the

cycle

• Sweden *stage four and five*

○ 1-4 in 250 years

○ Reasons for changes in birth rate: At first, birth rate high, death rate high, natural increase wa

stable and slow. Many children needed for farming, many children die at an early age. Religio

and social encouragement. No family planning

○ Reasons for changes in death rate: disease famine, poor medical knowledge, so many childre

die.



○ Stage 4 5: Birth rate low, death rate low, natural increase stable or slow increase. Family

planning, good health improcing status of women, later marriages. Good health chare, reliabl

food supply.

• Mexico (Stage 3( (1-3 in 100 years) quickly

○

Birth rate: falling, death rate: falls more slowly. Natural increase: increase slows down.Improved medical care and diet. Fewer children needed for farming. Improvements in medica

care, water supply and sanitation. Fewer children die.

FOOD

DEFINITIONS

Project Aid: specific purpose (building materials for new schools)

Programme Aid: Aid for a specific sector e.g. education system

Food Aid: Food given to countries in need

United Aid: The country receiving the aid, can spend the money they choose

Tied Aid: The aid must be used to purchase products from a country that donated it or a specified group of countries.

CRITICISM OF AID

• Aid is seldom given from motives of pure altruism

○ War : USSR and US each use aid to influence the internal politics of other nations

○ Often given in the interest of the donor than the recipient (form on neo-colonialism)

• Aid is ineffective

○ It did fulfill intensions

○ Did not help the people it was supposed to help

○ Cultural Norms are not always considered

2003 earthquake in Barn, Iran

Aid did not consider regional belief systems

Cultural backgrounds and language

Example-religiously prohibited pork, non-genetic medicine

• Hunger: the uneasy and uncomfortable physical condition coming from the absence of food

• Malnutrition: An imbalance in the variety of foods eaten (caused by a lack of nutrients and impropequality of food)

• Malabsorbtive food: Parasites in the intestinal tract prevent the body from absorbing nutrients

(common where water is contaminated)

• Chronic persistent hunger: The most basic and widespread from the individual becomes so weakthat the body eventually shuts down

○ Due to long term chronic lack of sufficient calories

• Seasonal under-nutrition: Before a harvest, food from previous harvest runs out

○ Hunger for weeks/months

• Famine: widespread lack of access to food that occurs when drought, flood, war or pestilence are

present

• Starvation: The complete absence of food due to severe malnutrition

○

Body breaks down its cells to get energy for survival



• Cash crops: are agricultural products that are grown solely for sale; rather than for consumption by

the growers

• Chronic hunger malnutrition: A condition in which essential nutrients are excluded from the diet

over an extended period.

○ Us a condition in which there is a deficiency of one or more proteins, minerals or vitamins in a

diet

• Standard Nutrition Unit:○ Recommendation 10 350 KJ/ day for the average global citizen

○ Measure of the overall health of the society

• Global Diets

○ Why do diets differ around the world?

○ Culture and Taboo: According to certain religions, certain foods may or may not be eaten

○ Money: Canadians have the opportunity to purchase many types of exotic foods

○ Nutrition: many people focus on eating healthy often times nutritious foods are rather costly

○ Environment: What us grown in the area

DEFIENCY DISEASES

• Kwahiorkor:

○ Results from a course diet consisting of starchy foods and low amounts of protein

○ Symptoms: stunted growth, thin arms/legs, hair orange tinted, hard bloated belly

• Marasmus

○ Results from the lack of protein coupled with the on set of starvation

○ Symptoms: thigh joints come enlarged, skin dries out, eyes pop out

• Beri-Beri

○ Results from a lack of Vitamin B (meat/fish/vegetables) Disease attacks the central nervous a

digestive system

○ Symptom: lack of movement in legs

• Scurvy

○ Results from the lack of vitamin C (fruits/vegetables)

○ Symptom: bleeding gums, loose teeth, infection in mouth, digestive elements

• Rickets

○ Caused by lack of Vitamin D, Bone disease

• Anaemia

○ Caused by an iron deficiency, disease of the blood

○ Symptoms: fatigue, fainting/pale yellowing skin, common on females

POLITICS OF FOOD: SUDAN

• 1/10 children go to bed hungry

• World bank is saying what countries can grow and what they can’t• Larger resettlement groups in the world

• News coverage of famine

• Hunger is a long term problem

• Politics play big role

○ South Sudan decided to split from North Sudan causing a lack of resources

○ The government and south Sudan fought over resources and food

○ IMF limited crop growing to only cotton causing a famine.

• Big business family ruined the country

○ Failing cotton prices

○ Expelled workers

○ For export not local

•

Animals die



• Crops fail

• Commercial farming

• Politics

CAUSES OF FAMINE EITHOPIA

Ethiopian Famine (1983-1985)

• record low rainfalls in 1980

• Living standards decreased

• On-going civil war

• Crippled economy further due to government

• Resettlement programs

International response

• Some aid was given

○ Channelled through government• Government’s inability to deal with famine criticism by the international community

Aid money was spent buying weapons

GMOS

GMOs are microorganisms, plants and animals that have had their genes altered to produce a desired effect that ismeant to benefit people in some way. Usually they are modified either to further scientific research or to alter the foodsupply

• Advantages

○ Better food quality and taste

○ Increased yields, often in less time

○ Fewer animal health problems - in animals that are resistant to diseases and can better withstand

typical factory farm conditions.

○ More efficient production of food

• Disadvantages

○ Safety risks - It is difficult to tell what the long term effects of eating these foods could be.

○ Environmental risks - Introducing plants and animals that do not naturally occur into the

ecosystem could have devastating effects

○ Social risks - Poorer countries do not have the means to produce genetically modified foods.

○ Ethical risks - Changing the makeup of animals is unethical and could start a slippery slope

resulting in the cloning of people or other similar prospects.



○ Collateral Damage - Making plants and animals that are resistant to bacteria can cause bacteria

to become stronger and harder to kill. Making plants herbicide resistant can lead to weeds that are

herbicide resistant as well.

100 MILE DIET

• Increasingly, people have become extremely disconnected from their food and where it comes from, wh

creates many ecological and health problems. The 100 Mile diet is an efficient way to prevent this proble

by eating food that is grown within a 100 mile radius from their residence. This works well in rural areas

well as urbanized ones since urban areas in North America are expanding their agriculture industry by

holding Farmer’s Markets and public gardens as well as small farms. The 100 Mile diet targets issues

directed towards mainly environmental problems since transporting food from remote countries has manegative impacts in the ecosystem. By decreasing the distance from the farm to the consumer’s plate,

levels of Carbon dioxide reduce as well as people become more conscious and aware of their food.

However, critics warn that developed countries like Canada and America have too many mouths to feed

avoid industrial farming. And even locally sourced restaurants often must get products like coffee and

cooking oil from far away. However, change of diet to a more eco-friendly lifestyle might just influence

enough people to become more environmentally aware. The 100 Mile Diet is a unique and exciting

adjustment for those who would like to take up the challenge. It has many benefits such as reducing

carbon dioxide emissions, health benefits, as well as helping local farmers expand their business which i

turn assists the economy. Though there are a few challenges that many people might face when shifting

this 100 Mile Diet. For instance, some people might need to give up certain dishes for the unavailability

the ingredients in the 100 Mile radius. Also, in order for some of these foods to be grown, they need theuse of greenhouses. Produce grown indoors requires large amounts of energy, which is a no-no for

environmentally conscious people. Some people might even find it frustrating for the inconvenience of

not having all foods found at one place unlike a supermarket. However, despite the negative impacts, th

100 mile diet program might just have enough momentum to change how North America eats.

RESOURCES

• Sustainability: Development that meets the needs of the population today without jeopardizing theability of future generations to meet their need

• Natural Resources

○ Renewable: infinite example: solar power

○ Non Renewable: Finite (one used, gone forever) Example: Fossil Fuels

○ Situational: Renewable or non-renewable (depending on its use) Example: Fish

○

Aesthetic: resources that make environment better-looking (lakeshores, flowers etc)

• Resource Management: The management of the interaction and impact of human societies on the

environments

Documents

2012 Exam Review